Binance walks away from FTX deal, citing ‘mishandled customer funds,’ regulatory scrutiny

Binance has announced that it will not pursue its option to purchase FTX because of its due diligence and reports that a US agency was investigating the exchange over its handling of customers’ funds.

As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of https://t.co/FQ3MIG381f.

— Binance (@binance) November 9, 2022

Binance stated FTX issues were beyond its control and ability to help.

The Changpeng Zhao-led exchange continued that the crypto ecosystem will grow stronger as more “regulatory frameworks are developed and as the industry continues to evolve toward greater decentralization.”

FTX had suspended withdrawals for customers after reports had revealed the shaky state of its reserves.

Following the news, CryptoSlate data shows that FTT tanked to $2.1, while Bitcoin (BTC) dropped to $15,800.

Journalist at CryptoSlate

Oluwapelumi is a believer in the transformative power Bitcoin and the blockchain industry holds.